Lobbying to be discussed with ministries: Khurshid-15/12/10

Lobbying to be discussed with ministries: Khurshid

Chennai Ruling out the possibility of his ministry wading into the 2G spectrum scam, Corporate Affairs Minister Salman Khurshid today said he would discuss the issue of regulating corporate lobbying with other ministries following the storm over the Niira Radia tapes.
"These (spectrum scam) are not company law-complaint issues entirely. These are issues that involve many other things that the concerned ministry has to consider. I can't barge into any other ministry's mandates and say I will look into it," Kurshid told reporters here.

When asked if there was a move to ban or regulate corporate lobbying after the Radia tapes controversy, he said: "There is no law on this now. Today we do not have anything in the draft that is before Parliament. But we may have to find some other way of regulating it."

Defending the practice of corporate lobbying, he said, "This is democracy. I see nothing wrong in a person promoting a particular point of view. That particular point will always be promoted sometimes generally person to person, sometimes sector to sector and sometimes industry to industry in front of the government."

Following the leak of conversations of corporate lobbyist Niira Radia with politicians, corporates and media persons, Tata Group Chairman Ratan Tata has moved the Supreme Court against the leak of tapes involving him and corporate lobbyist Niira Radia and the further publication of the same.

HDFC Chairman Deepak Parekh had also commented on telephone tapping and the leak of 'private conversations' saying the morale of the industry has been hurt by such incidents.

Lobbying is a legitimate business in countries like the US. However, it is not recognised in India in statutory or non-statutory form.

On the other hand, Diljeet Titus, senior partner of law firm Titus & Co said, “Lobbying, which basically means influencing government decisions externally, could invite Prevention of Corruption Act and may also go against the service rules for bureaucrats".

Lalit Bhasin, managing partner Bhasin & Co said, "In the US lobbying is not only for corporates, but also for appointing judges. It is a flourishing industry there, a recognised mode of canvassing... In India, it is a developing phenomena like the public relations."

He added that lobbying, which is an act of trying to influence government leaders, is not seen as a good corporate practice in India.

Asked whether corporates were nervous after the Radia tapes issue, Khurshid said Prime Minister Manmohan Singh had yesterday assured Corporate India that companies have no reason to be concerned.

When asked about the need for a relook at the Foreign Direct Investment (FDI) policy after the spectrum controversy, Khurshid said, "We are always constantly looking at these issues and as far as we are concerned lots of FDI issues are referred to Home Ministry before we give our clearance."